Paul Polman: Unilever boss resigns after the seat fiasco

THE HAGUE: Unilever's president, Paul Polman, will retire after ten years at the helm of the consumer giant, the firm said Thursday after the failure of the project to transfer the headquarters of the London firm in the Netherlands.

The Anglo-Dutch manufacturer of iconic brands like Marmite and Dove Soap will be directed from January by Alan Jope, the current head of its huge beauty and personal care department.

Unilever's chairman, Marijn Dekkers, said that Polman was an "exceptional business leader who has transformed Unilever, making it one of the most successful companies in its sector and the most competitive company in the world. one of the most admired companies in the world ".

Polman, 62, tweeted that he had decided to "step down from my CEO position," adding, "It has been a great honor to lead this team over the last 10 years and build together a sustainable business that has made the difference for millions of people, lives. "

"I have no doubt that I will leave the company in excellent hands, and under Alan's leadership, Unilever is well positioned to thrive in the future," added the Dutchman.

Jope, 54, who currently runs the company's largest division and has been with Unilever since 1985, said it would be a "huge privilege to lead Unilever."

Polman is expected to retire as CEO on December 31, but will remain with the company for six months to transition with Jope, the firm said.

Neither of them mentioned the proposed transfer of the London firm's firm base to the Dutch port city of Rotterdam, but Polman's position was in doubt since his failure on October 5th.

Unilever was founded in 1930 after the merger of the Dutch margarine producer Margarien Unie and the British soap maker Lever Brothers. He is now best known for his products, including Magnum and Ben and Jerry's ice cream brands and Knorr soups.

Since its inception, Unilever has maintained a two-headed structure and listings on the London, Amsterdam and New York stock exchanges.

But in March, Polman unveiled a plan to create a unique structure for the company in the Netherlands.

Unilever faced growing opposition from key shareholders including Aviva Investors, Royal London, Columbia Threadneedle, Lindsell Train, Legal & General Investment Management, M & G Investments and Brewin Dolphin.

Many were unhappy that the plan ended Unilever's listing on the London Stock Exchange, which meant that many would have had to sell shares in Britain.

The announcement of the departure from London was widely interpreted as a symbolic coup for post-Brexit Britain, but analysts also pointed out that Unilever may have asked for protection from the country's stricter rules Against takeovers following the hostile attempt of their American rival Kraft. Heinz last year.

Analysts also said Polman had mismanaged the headquarters problem.

"This decision, while surprising by its timing, probably should not be too unexpected given the failed attempt to transfer its main listing to Amsterdam, which has upset many UK-based shareholders," said Michael. Hewson from CMC Markets UK.

"It also puts an end to a ten-year term in charge of what has been a profitable period for the company, but also allows senior executives to renew the relationship with their major shareholders, which has been damaged by the rank of listing. "

Jos Versteeg, of the Theodoor Gilissen bank, told AFP that Polman "had made a big mistake by misjudging the position of UK shareholders on the move plan.

"But it's an exaggeration to say that this mistake cost him his job because he only needed 25% of the shareholders to block the move, the announcement that unfortunately coincided with Brexit," he said. he added.

Versteeg also noted that Polman had previously spoken to withdraw before the move was canceled.

Polman can "retire in peace after a good job," he said.